Kenya’s government announced on November 13, it would review the rule that forces foreign investors to hold not more than 70% of stakes in a company and partner with locals.

Known as the 70-30% rule, this law was introduced in another related to business establishment (Companies Act). Since it was implemented, many complaints arose from foreign investors and multilateral financial backers who judged that it would slow down foreign investment in the country who seeks to stimulate its economic growth and generate more jobs.

“The rule is being reviewed at the moment. We have made our position very clear that the way it has been drafted needs to be relooked at,” Kenya’s minister for Enterprise and Industrialization said following a meeting held in Nairobi between companies’ heads and government executives.

Germany’s ambassador to Kenya, Jutta Frasch, who was present during the meeting emphasized that all the development partners of Eastern Africa’s leading economy wish the controversial rule gone. “If you wish to attract foreign direct investment (FDI) and generate jobs in the country, I suggest you change this rule”, she added.